NCC Approves 50% Tariff Hike for Telecom Operators in Nigeria

Just of recent, NCC approves a 50% tariff hike for telecom operators in Nigeria. Telecom service providers in Nigeria, such as Glo, MTN, 9mobile, and Airtel, shall effect an increase of 50% across the board on calls, SMS, and data services following an announcement made by the Nigerian Communications Commission (NCC) that was recently granted. 

The NCC announced through the public affairs director that there is a fine balance between consumers and the industry. For example, operators who wanted over a 100% raise on tariffs had their requests moderated. 

This decision, also known as an approved adjustment, weighs carefully in the balance consumers and the industry. 

Adjustments put in place will not exceed recommended limits; they will remain within the bands established after the Cost Study NCC 2013. 

Furthermore, those requests related to further adjustments to tariff packages will be treated on a case-by-case basis, but they are within the desired reforms for the sustainability industry.

Updated Price System After the 50% tariff hike for telecom operators

With the increase of up to 50%: 

Call Charges: The basic call charge will go up from N6.40k to N9.60k per minute, and the mean rate is set to go from N11 to N15.50k per minute.

SMS Charges: Sending SMS will change from N4 to N6 per message.

Data Charges: The mean rate of a gigabyte of data will increase from N350 to N525 per gigabyte.

These changes here are done to reflect the increasing expenses involved in running the business with no movement in the tariffs that have been set since back in 2013.

This simply means that you should expect a 50% increase in price on any tariff plan that you subscribe to, including but not limited to call plans and data plans.

Reactions from Industry and the Government 

Telecoms have for a time now claimed that rate increases were required if they were to service and function optimally in the face of high levels of inflation and economic conditions in Nigeria. 

The government on the other hand accepted that there is a need for the increase but pointed out the fact that better service delivery should be prioritized.

According to the Minister of Communications, Innovations, and Digital Economy, Bosun Tijani, “We are undertaking market research on telecoms sustainability, and the outcome will be ready in two weeks. It will assist in determining how best to help operators and improve service provision.” 

For operators, it is a great opportunity to undertake some operational recuperation, but for consumers, it means one additional cost while living standards have already become unbearable. 

The NCC, true to its reputation, informs Nigerians that the 50% tariff hike for telecom operators are to guarantee service quality without making the services expensive to use. 

Having these changes coming into effect, Nigerians will be looking forward to more information from the government sector study, which is likely leaning toward more liberalization policies where consumers will be protected while the industry develops.

Currently, I don’t know if anyone else has, but I’ve noticed this increment on some providers like MTN and Airtel. I believe others will follow the same footsteps.